The intensification of geopolitical rivalries, particularly between major powers, has reshaped global trade dynamics, leading to the fragmentation of supply chains and the emergence of economic blocs. This realignment poses significant challenges for global value chains, including increased trade barriers, rising costs and potential disruptions. However, it also presents opportunities to foster sustainable and inclusive economic growth by incentivising the creation of diversified, regionally integrated and resilient supply chains.

This policy brief examines how strategic competition between major economies can act as a catalyst for supply chain realignment to prioritise sustainability and resilience. By addressing the intersection of geopolitical rivalries and supply chain dynamics, it offers actionable insights for the G20 to shape a cooperative, sustainable and inclusive global trade system.